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Tesla going bankrupt is this really a realistic possibility is this real life guys this hedge fund manager we’re gonna dissect his comments here in just a second he believes tesla could go bankrupt within a few months yes you heard me right a few months so we’re gonna talk about this and i’m gonna kind of give you my opinion on if i think this is realistic or if
This is completely a bunch of malarkey he is a short seller on tesla stocks obviously he has a hidden advantage he wants tesla to fall obviously okay so he says tesla is just months away from a total collapse it says this hedge fund manager unless elon musk pulls a rabbit out of his hat tesla will be bankrupt within four months says john thompson of villas capital
Management companies eventually have to make a profit and i don’t see that ever happening here he told market watch this is one of the worst income statements i’ve ever seen in between the story and the financials the financials will win out in this case thompson manages twenty five million dollars and is a fund as short obviously tesla shares it’s actually their
Biggest position currently just real quick before we get on to the rest of what he said well look at the income statement he says it’s one of the worst income statements he’s ever seen i’m not convinced about that but then we’re kind of you know just talk of here for a second about he says companies eventually have to make a profit yeah but companies could go
Decades without making a profit and still make a go of it okay godaddy i don’t think that a godaddy is a public company right this company has never made a profit in the history of the company and a company is like 20 years old guys amazon took losses for the longest time amazon just really live very recently started to get a little bit profitable which is still
Very miniscule okay netflix took losses for a ton of time facebook you know pretty much anybody twitter any social media company out there is taking losses for a long time so the notion of oh just because they’re taking losses means they’re gonna go bankrupt that’s not accurate tons of companies do that okay it’s very common so let’s look at these next two paragraphs
Here tesla without any doubt is on the verge of bankruptcy he told clients in an email over the weekend he explained that funding will be hard to come by in the face of problems in two during the model 3 declining demand for the model s in model x extreme valuation and likely a downgrade of its credit rating by moody’s from b-minus to ccc as a reality check tesla
Is twice as much as ford ok yep ford made six million cars last year in seven point six billion dollars in profit while tesla made one hundred thousand cars last year and took a two billion dollar loss further ford has 12 billion dollars in cash for a rainy day tesla he says as you’ve got to likely run out of money within the next three not months i’ve never seen
Anything so absurd in my life so real quick i do agree with him in this sense that you know the valuation on tesla compared to what they’re producing now is ridiculous there’s no other way and that’s although i’m very long bullish tesla i don’t own any tesla shares because i look at the valuation i’m like they’re only doing this number of cars right now yes i think
They’re gonna do way more in that in the future i think they’re gonna be the dominant auto manufacturer but looking at this one from a valuation standpoint i got to pay a bigger valuation than what i would pay for ford that’s pretty steep man that’s pretty steep so i’m kind of welcoming this drunk so obviously these comments had an effect on the stock today as i’m
Taking a screenshot tesla shares we’re down right around 6% they might have got worse as the market got worse throughout the day i’m not sure income statement so this income statement right now okay total revenue that’s one of the biggest things are gonna look at an income statement you’re gonna look at the revenues okay when you look at an income statement look
At you know the loss or the gain they had in profits they did four billion dollars 2015 2016 they do seven billion dollars in revenues this past year nearly 12 billion dollars in revenue okay this this current year were in they expected to do close to 20 billion dollars in revenue and next year 2019 they’re expected to do around 27 billion dollars in revenue all
Right now there’s a look at the bottom line real quick obviously huge losses are taking 888 million then you know almost 700,000 hundred million loss and then almost a two billion dollar loss so obviously they are taking big losses here but if we look at that income statement guys what is the trend we see we see big losses absolutely that is a trend but what’s
The other trend we see revenue going up massively on a massive scale right now in their premier product just came out tesla’s iphone just came out in the model 3 ok this is just going into mass production now ok so this is a company that is projected to do somewhere around twenty seven billion dollars and 2019 which means in my opinion tesla will be doing over
100 billion dollars in revenue within the decade and they will be the dominant auto manufacturer for sure in the united states possibly around the world i’m not going to go as far to say around the world but for sure in the united states there will be the dominant auto manufacturer this guy’s whole premise on beta tesla is gonna go bankrupt is the craziest thing
I have maybe ever heard ever i’m like he has no clue i’m like do you have any clue on how many banks would throw any bit of money they could raise bonds you know must could sell some of his ownership you think ford and gm and the european automakers will gladly make it investment in this yes i can almost guarantee you behind closed doors but a lot of them probably
Already have made offers hey we want 10% we want 15% ownership of tesla will give you you know five billion dollars ten billion dollars whatever amount it takes you think they want a piece of that pie yeah absolutely guys everyone wants a piece of that pie right this is a company that is going to grow on a massive scale and become the dominant auto manufacturer
It’s here for everyone to see so the fact that this guy thinks they’re going to go bankrupt it’s unrealistic bankrupt companies companies that go bankrupt okay those are kind of companies that no one wants to loan money in because they don’t believe that that company is it has a future okay tesla almost anybody believes it has a future unless they just hate tesla
For whatever reason they hate tesla okay but almost any practical person will look at esalen they say that’s for sure you know even if you’re not as bullish as me where you think they’re going to be the dominant auto manufacturer in north america you’re probably at least it’s saying there’s probably gonna be one of the most dominant auto manufacturers in the united
States of america if not around the world that’s what most practical people would say almost no one out there would say oh no the revenues are go down vegas so a realistic guys so there’s a company is gonna be bringing in more and more money will they get to profitability probably eventually i don’t know if it’s this year i highly doubt it this year okay i highly
Doubt it even next year maybe it’s 2020 maybe it’s 2021 sometime around then we don’t know no one knows in that’s kind of this guy’s point but he thinks they’re gonna go bankrupt i’m like dude you know they’re not going bankrupt okay the companies that that are you becoming an industry changing company that what amazon represents to retail tesla represents that
In auto manufacturing okay what netflix represents to you know what it’s done to cable companies tesla represents that to what it’s doing to auto manufacturers and if you look at auto manufacturers you know the tesla’s gonna do 27 billion probably somewhere around there in 2019 okay where do you think that 27 billion dollars in pie is coming out of it’s not just
Like coming out of thin air it’s not just like some new industry they’re grown those are gonna come out of ford sales gm sales the european company sales you know all these different companies that you know or mass-market the some of the korean companies that those sales are going to be taken directly from all those companies a little chunk here a little chunk
Here and when this company is doing 50 to 100 plus billion over the next decade they’re gonna be the dominant guy in the space so it’s so unrealistic for this guy to say they’re going bankrupt it’s almost laughable but it’s a short seller obviously who knows maybe he wants to cover his shares he wants to get to go to you know to go down as much as possible in the
Short term yeah i hope he gets it to go down more cuz i would love to buy some shares of tesla at some point in time i just this valuation still on tesla i just cannot pay it i think they’re gonna you know be way bigger but guys it’s like a 50 billion dollars or something you got to pay for this company right now company is losing a lot of money right now and
That produced you know a hundred thousand cars last year so i can’t pay up for that valuation but on the other hand they’re not going away anytime soon and they’re gonna become more dominant so that’s my opinion let me know your guy’s opinion down there in the comment section i would love to hear from you guys as always make sure you get in my private stock market
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Transcribed from video
Hedge Fund Manager says "Tesla is going bankrupt within months" By Financial Education
